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Cardano (ADA) forms a higher low and regains the $ 2 level. What to expect? By BeInCrypto





© Reuters. Cardano (ADA) forms a higher low and regains the $ 2 level. What to expect?

Cardano (ADA) is consolidating its position as the third largest cryptocurrency by market capitalization. ADA has formed a higher low and technical indicators suggest that it could soon break the all-time high of $ 2.47.

The pair also looks bullish and is trying to turn long-term resistance into support. If the altcoin breaks through the 5,000 satoshis area, the rally could turn parabolic again.

ADA claims the 2 dollars

ADA has been rising from its July 21 low at $ 1.13. Here, ADA bounced for the seventh time from the support area near $ 1 (green), above which it has been trading for 147 days.

First, a gradual upward movement broke the resistance at $ 1.50 on August 10. The up move then accelerated, with ADA breaking another resistance near $ 1.80. A local peak was reached at $ 2.25 on August 14. This is less than 10% below the all-time high of $ 2.47 set on May 16 (yellow line).

ADA chart by TradingView

On August 18, ADA went through a new bullish test of the $ 1.87 area and validated it as support. Hence, it formed a higher low for the uptrend on the daily interval. This area coincides with the 0.618 Fibonacci retracement level by measuring the entire downward movement.

Shortly after this event, ADA rose another 10% and returned to a price above the psychological level of $ 2. Currently, it is trading at the 0.786 Fib retracement. If Cardano maintains this level, we could see another bullish move and a new all-time high in the coming days.

Technical indicators and long-term objectives

Technical indicators are bullish and support the possibility of a continuation of the uptrend. The RSI bounced off the border of neutral territory and returned above the 70 line (orange circle). The MACD signal line is rising, despite the indicator generating increasingly weak green bars of positive momentum. The Stochastic Oscillator has returned to overbought territory after forming a bullish crossover.




ADA chart by TradingView

If Cardano breaks the ATH at $ 2.47, the next long-term targets can be found through the external Fibonacci retracement. The closest target is $ 2.87 at the 1,272 Fibonacci retracement level. The next levels to watch above that are $ 3.38, $ 3.94 and $ 4.85, corresponding to the main Fibonacci retracements 1.618, 2 and 2.618.

ADA chart by TradingView

ADA / BTC

The ADA / BTC pair’s price action looks even better than its USD counterpart. After forming a double bottom pattern between July 30 and August 10 and testing the previous peak near 3,193 satoshis (green), ADA started bullish momentum.

ADA chart by TradingView

Cardano broke the resistance at 4,236 satoshis and validated it as support on August 18. The pair is already testing the top of the range set by the high at 5,028 satoshis on May 16.

The technical indicators resemble the USD pair. The RSI is recovering the 70 line and the MACD is rising despite the drop in positive momentum. The Stochastic Oscillator is also above the 80 line and in bullish territory.

In the long term, we can observe an interesting situation on the weekly chart. ADA is currently at the 0.5 Fib retracement level for the entire downward move from the all-time ATH at 9,180 satoshis in January 2018 to the bottom at 398 satoshis since August 2019.

If the 4,780 satoshi area corresponding to the 0.5 Fib level breaks, a quick move to 5,816 satoshis at the 0.618 Fib retracement could be on the cards.

ADA chart by TradingView

For the previous discussion of () from BeInCrypto, click here.

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TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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